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What is the weighted-average interest rate

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Question - Vaughn Manufacturing is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6430000 on March 1, $5310000 on June 1, and $8450000 on December 31. Vaughn Manufacturing borrowed $3250000 on January 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 11%, 3-year, $6390000 note payable and an 12%, 4-year, $12250000 note payable. What is the weighted-average interest rate used for interest capitalization purposes?

a. 11.51%

b. 11.66%

c. 12.00%

d. 11.86%

Reference no: EM132535020

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